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GLOBAL MARKETS-Wall Street rallies on U.S. stimulus and vaccine hopes as bond markets calm

Published 2021-03-01, 04:26 p/m
© Reuters.

(Updates prices and details)

* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Reuters Live Markets blog: LIVE/

By Suzanne Barlyn

NEW YORK, March 1 (Reuters) - Global equities markets rose and the S&P 500 on Monday had its best day since June 5, with investors taking lower U.S. bond yields in stride on optimism over the $1.9 trillion coronavirus relief bill and distribution of Johnson & Johnson (NYSE:JNJ)'s JNJ.N newly authorized COVID-19 vaccine.

Wall Street's rise follows a jump in European shares and solid gains on Asian stock markets.

Investor optimism that the J&J vaccine would further lift the economy is "giving a lift to all of the 'go-to-work' stocks" that benefit from businesses reopening, said Jim Awad, senior managing director at Clearstead Advisors in New York.

A stabilization of U.S. Treasury yields has also removed pressure from growth stocks, Awad said.

The Dow Jones Industrial Average .DJI rose 603.14 points, or 1.95%, to 31,535.51, the S&P 500 .SPX gained 90.67 points, or 2.38%, to 3,901.82 and the Nasdaq Composite .IXIC added 396.48 points, or 3.01%, to 13,588.83.

The much-anticipated COVID-19 relief bill was passed in the U.S. House of Representatives on Saturday, and now moves to the Senate. pan-European STOXX 600 index .STOXX rose 1.84% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 2.01%.

Emerging market stocks rose 1.71%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.83% higher, while Japan's Nikkei .N225 rose 2.41%.

Reports on manufacturing and factory activity showed strength in many developed economies on Monday, including a three-year high in the United States, which could keep inflation concerns on the radar. sovereign bonds rallied on Monday as markets showed further signs of stabilization after their worst monthly performance in years. of economic recovery and rising inflation boosted global benchmark bond yields in February to their biggest monthly rises in years. But the expected run-down of U.S. Treasury balances at the Federal Reserve has held down shorter-dated rates. 10-year Treasury notes US10YT=RR last rose 8/32 in price to yield 1.429%, from 1.456% on Monday.

The coronavirus pandemic laid bare weaknesses in the financial system that should be addressed with new rules to prepare for the next shock, Fed Governor Lael Brainard said.

"We should not miss the opportunity to distill lessons from the COVID shock and institute reforms so our system is more resilient and better able to withstand a variety of possible shocks in the future," Brainard said. prices rose as the retreat in U.S. Treasury yields helped to bolster its status as an inflation hedge, but a firmer dollar limited bullion's advance.

Spot gold XAU= dropped 0.5% to $1,724.06 an ounce. U.S. gold futures GCc1 fell 0.45% to $1,720.40 an ounce.

The dollar index rose to a three-week high as investors bet on faster growth and inflation in the United States, while the Australian dollar gained after Australia's central bank increased its bond purchases in a bid to stem rapidly rising yields. BTC=BTSP rose 6.70% to $48,719.02, with Citi saying the most popular cryptocurrency was at a "tipping point" and could become the preferred currency for international trade. Sachs GS.N has restarted its cryptocurrency trading desk, a person familiar with the matter told Reuters. crude CLc1 recently fell 1.77% to $60.41 per barrel and Brent LCOc1 was at $63.45, down 1.51% on the day on fears that Chinese oil crude consumption is slowing and that OPEC may increase global supply following a meeting this week. Emerging markets

http://tmsnrt.rs/2ihRugV Global asset performance

http://tmsnrt.rs/2yaDPgn Germany 10-year

https://tmsnrt.rs/3sEKmfo

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